1040X Calculation

[Ochumare]

Hello Guys,

In error; last night I filed a personal tax return and forgot to include figures from a W2.   As the original return was filed, client showed a refund of $5K.   Today, I am correcting that mistake and amending the return to include figures from W2.  Now it shows tax payer owes $6K to the IRS.  In real life, the tax payer only owes $1K as they have not yet received the $5K refund.   In Proseries Basic - form 1040X, Line 17A, automatically populates the "refund" amount as paid, which in my case is not true as it was filed last night.

My question is:  Should I put $0.00 on line 17A (since tax payer has not received the refund) or leave the automatically populated amount of $6K?

I just don't want to create possible issues with the IRS and tax payer.

[Just-Lisa-Now- · Accepted solution]

You really shouldn't file an amended return until the original has completed processing and the refund received. IRS may catch this omitted W2 automatically.

[GodFather]

I agree with Lisa but wonder if a phone call to the Practitioner Hotline may help some?  Informing them of the issue and allowing them to provide some guidance.  

 866-860-4259

[sjrcpa]

I wouldn't bother. You probably won't even get through.

Tell the client to hold onto the $5K when they get it because they will need to pay it back.

[Ochumare]

Thank you so much for your recommendation.   Will put it into practice.

[Ochumare]

Thanks for the support and providing phone number

[Ochumare]

Good idea.   So much appreciate your support

[BobKamman]

IRS is not going to catch any omitted W-2, that's the whole problem with their document-matching system.  And even if e-filed, the amended return won't be reviewed by an IRS clerk, as they all are, until after the original is processed.  The goal now should be to stop the issuance of a huge, undeserved refund, so that you are not telling your client to put the money in the bank and then pay it back a few months later.  E-file the amended return NOW.  

[GodFather]

Keep us posted.  I'm curious if you get through and what they advise. 

[BobKamman]

Abandon all hope, ye who call someone who was hired last week and has never prepared a tax return for a paying client.  No wonder IRS has a backlog of 9 million 1040's to process -- they have to hire people to hold hands.